Market Round Up
Easing trade tensions between the world’s largest economies are giving investors fresh confidence to extend equities’ rally from the April lows, when markets slumped as Trump sought to rewrite global trade rules. That improvement in mood will be tested in the weeks ahead, with the Fed expected to cut rates and results from AI leaders offering insight into how durable recent profit strength truly is.
October brought a modest but welcome stabilisation across markets. Inflation trends continue to move in the right direction, and despite ongoing geopolitical and policy uncertainty, the corporate sector has proven resilient in recent earnings. AI-driven momentum plays continue to steal the headlines, but as the bull market matures, the valuation dynamic of quality growth companies is growing more compelling for UK and global investors.
As always, we focus on companies with strong competitive moats, pricing power and capital-light economics that are capable of compounding value through a wide range of environments.
Investment Views
In recent months we have reflected on company results, valuation trends, and the contrasting fortunes across global markets. Despite mixed economic signals and a narrow leadership in equities, we continue to find comfort in the strength and resilience of portfolio companies, whose cash generation and long-term growth prospects remain robust.
This month we focus on the underlying health and steady progress of these businesses, highlighting both the challenges and opportunities they face, and why we believe the current environment presents attractive valuations for patient, long-term investors.
Important information
Issued by Evenlode Investment Management Limited (Evenlode). Evenlode is authorised and regulated by the Financial Conduct Authority, No. 767844.
Whilst the funds Evenlode acts as investment manager for are available to retail investors via third party providers, please note that Evenlode do not have permissions from the FCA to deal directly with retail clients and the information provided in this newsletter and on the Evenlode website is for information purposes only. If you are not an investment professional you may still wish to visit the Evenlode website to find out information about Evenlode and the funds we manage but we recommend that if you wish to obtain advice regarding the suitability of the IFSL Evenlode Investment funds for you, you should contact a financial adviser. Applications to invest in any fund referred to on the Evenlode website can only be made through a third party and must only be made on the basis of the offering documents relating to the specific investment.
This newsletter is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The sale of shares of the fund may be restricted in certain jurisdictions. In particular shares may not be offered or sold, directly or indirectly in the United States or to U.S. Persons, as is more fully described in the Funds Prospectus.
Please note, any views represent the opinions of the Evenlode Team as at the time of writing and do not constitute investment advice. Where opinions are expressed they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. This newsletter is not intended as a recommendation to invest in any particular asset class, security or strategy. The information provided is for illustrative purposes only and should not be relied upon as a recommendation to buy or sell securities. Current forecasts provided for transparency purposes, are subject to change and are not guaranteed. Every effort is taken to ensure the accuracy of the data used in this document but no warranties are given.
For full information on the IFSL Evenlode Investment Funds, including fund risks and costs and charges, please refer to the Key Investor Information Documents, Annual & Interim Reports and the Prospectus, which are available on the Evenlode website. Recent performance information is shown on factsheets, also available on the website. Past performance is not a guide to future returns. Fund performance figures are shown inclusive of reinvested income and net of the ongoing charges and portfolio transaction costs unless otherwise stated. The figures do not reflect any entry charge paid by individual investors.
The IFSL Evenlode Investment Funds are subject to normal stock market fluctuations and other risks inherent in such investments. The value of your investment and the income derived from it can go down as well as up, and you may not get back the money you invested, you should therefore regard your investment as long term. As focused portfolios of between 30 and 50 investments, the IFSL Evenlode Investment Funds carry more risk than funds spread over a larger number of stocks. The IFSL Evenlode Investment Funds have the ability to invest in derivatives for the purposes of EPM, which may restrict gains in a rising market. Investments in overseas equities may be affected by changes in exchange rates, which could cause the value of your investment to increase or diminish.